Frequently Asked Questions

The Ohio Department of Taxation has compiled a list of frequently asked questions covering many different categories.

To view the questions, click on the "Select Category" bar and then click on the category you are interested in.  A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

Are rents/royalties received from the use of land for mineral rights eligible for the Business Income Deduction?

Generally, rents and royalties, regardless of the source, are nonbusiness income and thus are not eligible for the Business Income Deduction. However, rent and royalty income generated as part of a trade or business or by property that is an integral part of a trade or business operation may be business income.

Thus, if you received income from a company for the right to extract minerals from your property, or from the sale of said minerals, the income is generally nonbusiness income. However, if you can show that you are engaged in a trade or business related to these activities, or the income is from business property (such as farmland), then the income may be business income.

See the FAQ “What are some examples of business income vs. nonbusiness income?” for more information.
See R.C. 5747.01(B) and (C).